Venezuela Increases Tax Unit Value and Minimum Monthly Salary

The Venezuelan government has announced an increase in the tax unit (unidad tributaria - TU) value from VEF 500 to VEF 850 from 1 May 2018. This follows an increase in the TU value from VEF 300 to VEF 500 on 1 March 2018. The tax unit is used as a reference value for a number of tax purposes, including determining applicable progressive income tax rates, deductions, penalties, and others. For corporate income tax, the increase results in the following brackets:

• up to VEF 1,700,000 (2,000 TU)…